Hong Kong Securities & Futures Commission warns of cryptocurrency risks again

The SFC has issued a further warning about the risks of investing in ICOs, as well as about dealing with cryptocurrency exchanges.

The SFC has received complaints from investors in relation to both ICO issuers and cryptocurrency exchanges. In response, on 9 February 2018, the SFC wrote to seven ICO issuers and seven cryptocurrency exchanges regarding compliance with the Hong Kong regulatory regime.

Ashley Alder (SFC CEO) noted that the SFC is "also urging market professionals to do proper gatekeeping to prevent frauds or dubious fundraising and to assist us in ensuring compliance with the law."

The SFC has previously issued statements and warnings on cryptocurrencies in September 2017 and December 2017 (see our previous client alert on the December statement here).

The latest press release is available here.